Trump's tariffs, Scapia's ₹340 Cr. raise, and Airbnb's India boom 💸
Trump's tariffs, Scapia's fundraise, Airbnb's India rise – a lot to unpack.
We are back with our business newsletter edition. Today, we’ll cover three business topics in one go: Trump's new reciprocal tariffs, Scapia's ₹340 Cr. funding, and Airbnb's impressive boom in India. Let's dive in.
Trump's locks tariffs 🚢
First, some context.
Trade wars are heating up. On Wednesday, Trump announced a blanket 10% tariff on all US imports, with even steeper hikes for specific countries. India got hit with a hefty 26% tariff rate - one of the highest among major US trading partners. Since the US accounts for 18% of India’s total exports, this is a big deal.
Is there a silver lining?
While India's 26% tariff is high, it is still relatively lower than the tariffs imposed on some other Asian countries. For instance, China faces tariffs at 50%, Vietnam at 46%, and Indonesia at 32%. This relative positioning may offer Indian exporters a competitive advantage over their counterparts in these nations.
Fact.
India’s pharma industry just dodged a bullet, as it has been exempted from this rule. This makes sense, as pharma accounts for a big chunk of our exports to the US. Other exempted sectors inlcuded semiconductors, energy products (oil, gas, coal, LNG), and copper.
What will the govt. do now?
While, countries like China and the EU are considering retaliatory measures, India has made it clear that it won’t retaliate and would figure out better ways to negotiate if needed. And for sectors like textiles and electronics, India might actually have an edge over competitors like Vietnam, Bangladesh, Pakistan, China, Thailand, and Indonesia.
The hit to India’s GDP?
A tiny 0.1% in the short term, according to the PHD Chamber of Commerce and Industry (PHDCCI). Plus, the exports to the US make up just 2% of our GDP, so on the macro level, we are fine. So for now, let’s sit and see how this works out in the short term.
Scapia’s ₹340 Cr. funding 💸
First, some context.
Scapia, the travel fintech startup has raised ~₹340 Cr. ($40M) in the Series B round from Peak XV Partners, along with participation from existing investors Elevation Capital, Z47, and 3STATE Capital.
What does the company do?
The company is blending travel and credit into a single rewarding experience. It’s co-branded credit card offers zero joining and annual fees, no forex markup, and complimentary lounge access. Users earn 10% rewards on all spends and 20% on travel bookings via the Scapia app. The platform also enables seamless bookings and reward redemptions across global airlines, hotels, visas, and domestic transport options.
The market opportunity.
The company is targeting Gen Z and millennials, a generation that sees travel as a necessity, not a luxury. But overall, credit card penetration in India remains low at ~5%. Scapia wants to change that - making credit cards cool for these customers, so they can travel more and get rewarded for it.What will we see ahead?
Scapia won’t just be about credit cards-it will be eyeing a full travel-fintech ecosystem. The idea? Stack multiple products and services onto its current offerings. For example, it already offers forex cards tailored to customers based on their creditworthiness. This is a different playbook from Niyo, which focuses solely on forex solutions. Scapia is betting on long-term customer retention by keeping users hooked as their financial needs evolve.
Airbnb’s India playbook 🏖️
First, some context.
Airbnb, the company that disrupted modern travel, is seeing massive growth in India - now one of its fastest-growing markets. But what’s driving this surge? Let’s break it down.What is “really” the core offering?
Unlike traditional hotels that offer standardized services, Airbnb sells experiences. When you book an Airbnb, you’re not just renting a room - you’re stepping into someone’s home, their story, and their way of life. Instead of polished hotel service, guests get a more personal, local touch, making their trips feel immersive rather than transactional.
Who are the target users?
The target users are urban millennials and GenZ travelers who see travel as a lifestyle, not a luxury. This crowd craves unique stays, local experiences, and a personal touch. That’s why homestays, boutique villas, and brands like Zostel are booming. Airbnb isn’t just selling rooms; it’s selling a vibe, making it the go-to for a generation. Roughly 80% of the users that come to the platform belong to this cohort.
Cracking trust as a marketplace.
Building trust in India is brutal, especially when your entire model is based on strangers staying in each other’s homes. In a country where trust deficits run deep, Airbnb doubled down on curating high-quality hosts and guests, knowing that good experiences attract more of the same. This relentless focus on trust and safety is what keeps the flywheel spinning.
Airbnb focused on getting the right hosts with the right properties. They got hosts from very specific demographics initially, like young, chill professionals or older individuals living alone in large homes. Later, they strengthened the community by organizing several meetups where hosts could share their experiences and insights. Solving for the right properties and hosts automatically solved for great customer experience and retention.
Fact.
Brands like Stayvista and Staymaster are also using Airbnb as a distribution channel to crack discovery for their offerings.
Btw, we hosted Amanpreet (Airbnb India Head) on the GrowthX Inner Circle Podcast. Check the full episode here.
We also launched a new episode of GrowthX Wireframe, where we covered everything about Tesla’s India entry.
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